Managing transition risk – 8 tips for a successful succession plan
Abstract: It’s critical for banks to develop a solid succession plan to manage transition risk. When key management personnel retire or leave unexpectedly, a succession plan helps ensure that the bank is prepared for the change and proactively addresses the vacancy. This article explains that a succession plan must be tailored to a bank’s size, complexity, location, culture, risk profile, product and service mix, management “bench strength,” and other characteristics. A sidebar discusses regulatory expectations regarding succession planning.